The number of complaints lodged by customers in five Nigerian banks has surged by 117% to reach 6,865,217 year-on-year as of June 2023, compared to 3,156,704 in the same period in 2022. Financial claims arising from these complaints amounted to N326.11 billion, marking a 289% increase from the N83.78 billion paid in claims in June 2022. The surge in complaints is attributed to various factors, including the fallout from the Naira Redesign policy of the Central Bank of Nigeria, increased electronic transactions, and challenges in customer service due to knowledge gaps and staff turnover.
Key Points:
- United Bank for Africa (UBA) experienced the highest increase in complaints, rising by 306.32% to 1,930,518 as of June 2023, compared to 475,121 in the same period in 2022. The disputed amount also surged from N4.39 billion to N125.26 billion.
- Access Holdings saw complaints rise by 132.25% from 1,387,702 to 3,222,907, with the disputed amount increasing from N57.87 billion to N136.75 billion.
- Fidelity Bank reported a 77.69% increase in complaints, reaching 1,010,586 from 568,738, with the claimed amount at N55.20 billion, marking a 268% increment.
- Zenith Bank Plc witnessed a 12.55% rise in complaints, reaching 247,685 from 220,067, and the amount involved in the complaints increased by about 66%.
- Guaranty Trust Holding Company (GTCO) was the only bank to see a decline in received complaints, signaling about a 10% improvement. Complaints dropped from 505,076 in H1 2022 to 453,575 in H1 2023, with the disputed amount also decreasing.
Analysis: The significant surge in customer complaints within Nigerian banks highlights the pressing need for improved customer service and streamlined banking processes. Factors such as the Naira Redesign policy, increased electronic transactions, and knowledge gaps in the financial sector have contributed to this rise. It is imperative for banks to invest in training, particularly for customer-facing staff, and to implement policies that enhance the overall banking experience for customers. Addressing these issues will not only improve customer satisfaction but also strengthen the overall reputation and stability of the banking sector in Nigeria.
